Apple considers raising iPhone prices, WSJ says
By: Reuters
..... Apple is weighing price hikes for its upcoming fall iPhone lineup but is keen to avoid linking any increase to U.S. tariffs on imports from China, where most of its devices are assembled. The Wall street journal reported on May 12. [2025]
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The technology giant's shares were up 7% in premarket trading, tracking gains in the wider market after Washington and Beijing agreed to temporarily slash the reciprocal tariffs on May 12. [2025] But Chinese imports will still be subject to a 30% levy in the United States.
..... Apple is among the most prominent companies caught in U.S.-China trade tensions, which intensified in recent months after a series of tariffs initiated by President Donald Trump.
..... The company did not immediately respond to a Reuters request for comment on the WSJ report, which cited people familiar with the matter.
..... Raising prices could help Apple cushion higher costs stemming form the tariffs, which have hampered global supply chains and forced the company to shift more production to India.
..... Apple said earlier in May [2025] the tariffs were expected to add about $900 million in costs during the April-June [2025] quarter and that the company would source a majority of the iPh9one soled in the United States in the period from India.
..... Analysts have for months speculated about a price increase from Apple, but warned that such a move could cost it market share, especially as rivals such as Samsung try to attract consumers with AI features that Apple has been slow to roll out.
..... The cheapest iPhone 16 model was launched in the United States with a sticker price of $799, but could cost as much as $1,143 due to tariffs, per projections in April [2025] from Rosenblatt Securities, which says the cost could rise by 43%. The WSJ report said Apple was planning on coupling and design changes including an ultra thin design, which could help justify the increase.
..... Amazon.com was in the cross-hairs of the White House last month [04/2025] after its low-cost haul unit weighed listing import charges due to U.S. tariffs, prompting the Trump administration to accuse the company of engaging in a hostile political act.